Complete transparency isn’t only about the rates in less-than-truckload (LTL) shipments. Some shippers may think that the only way to save money is to negotiate rates with multiple carriers and third-party logistics (3PL) providers, but this is usually not the case.
Price negotiation can only go so far. There are several other factors that go into the LTL shipment process that it is important to uncover. What you see isn’t always what you get.
A low rate may seem like the best deal, until you get the bill with additional surcharges and fees that you never even thought to ask about.
More and more companies are utilizing LTL shipping as new industries, progressing through e-commerce and other technologies, take the next step up in the marketplace. LTL is already a $36 billion industry and is only expected to grow. Retailers are utilizing more and more LTL shipments to transport inventory directly to stores or distribution centers.
“Third party logistics companies and freight brokers are picking up so much less-than-truckload freight these days, that they are being labelled “3PLTLs,” said Dan Goodwill on his blog. As Amazon and other e-commerce businesses continue to thrive, the trend will only continue.
According to David Ross, a trucking analyst at Stifel Inc., the growth can be attributed to lower taxes, reduced regulations, increased capital spending, and a new administration’s focus on domestic jobs, infrastructure, and manufacturing. This increase is also connected to overall changes and enhancements in the supply chain.
Not all carriers are transparent or fair with you about the factors that go into their LTL shipment rates. Some may only price on weight or distance alone. Finding the right LTL carrier is one of the most important decisions a shipper can make. As a shipper, value comes from carriers who pickup and deliver your LTL shipment when promised, without damaging your freight. Quotes should be competitive and economical without any additional fees.
Other carriers jack up the rates for lift gates. They double the rates for fuel surcharges. They confuse you with insurance rates and premiums.
At Vestra Logistics, we show you everything. We are totally transparent, and everything is a pass through. We share all accessorials and insurance rates up front. Our Freight Aggregate Index Return (F.A.I.R.) formula is applied to your freight spend with the profit margin frozen — all additional savings are returned to you. It’s fair and simple. We have saved customers as much as $40,000 in one month’s freight spend by applying our transparency F.A.I.R. program to their transportation cost.
Imagine how much you can save when developing at long-term relationship with Vestra. We believe the right way to do business is to be completely open and transparent with you, so that you’ll want to continue to work with us.